Matolcsy: FX share of state debt should be cut to 10% by 2020

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The share of state debt denominated in foreign currency fell to 31% by the end of 2015 and to 25% by the end of last year, and should be lowered to 10% by the end of 2020, National Bank of Hungary (MNB) Governor György Matolcsy said on Wednesday, according to Hungarian news agency MTI.

Matolcsy was speaking at a session of Parliament about the performance of the MNB in 2015 and noted the role the central bankʼs self-financing program played in lowering the share of FX debt.

The central bank governor said that in 2015 the MNB had continued with its loose monetary policy supporting the business environment.

Matolcsy said that lowering of the base rate and the MNBʼs Funding for Growth Scheme (FGS) had raised Hungaryʼs economic growth by around 1.5%. The same steps resulted in lowering the countryʼs debt financing costs by HUF 300 billion between 2013 and 2015, he added.

Lower debt financing costs could amount to saving HUF 600 bln, or around 2% of GDP by 2020, he said.

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